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HDFC Bank falls as India's top private bank posts sequentially weak Q1 loans, deposit growthThe flat deposit growth was below what the bank managed a year ago, Jefferies analysts said in a note, calling it 'slightly disappointing.'
Reuters
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<div class="paragraphs"><p>The signboard of HDFC Bank's automated teller machine (ATM) in New Delhi, India.</p></div>

The signboard of HDFC Bank's automated teller machine (ATM) in New Delhi, India.

Credit: Reuters Photo

Bengaluru: Shares of India's top private lender HDFC Bank fell over 3% on Friday, a day after it reported a drop in loans during the three months ended June 30, and no rise in deposits from the previous three months.

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HDFC Bank on Thursday said its gross advances dipped 0.8% sequentially in the first quarter.

The flat deposit growth was below what the bank managed a year ago, Jefferies analysts said in a note, calling it "slightly disappointing."

Shares of HDFC Bank - down 2.4% this year compared with gains of over 11% in the benchmark Nifty 50 index - were set for their biggest one-day drop since June 4. The stock had hit a record high earlier this week on hopes of a bigger weight in a key MSCI index.

HDFC Bank was also the top loser on the Nifty 50 index on Friday.

The bank's merger with its non-bank lender parent last year added a large pool of mortgage loans to its portfolio but a much smaller amount of deposits.

As of June's end, the bank's advances stood at Rs 24.87 trillion ($297.91 billion), while deposits stood at Rs 23.79 trillion.

Low-cost current and savings account deposits fell 5% sequentially to Rs 8.64 trillion in the quarter.

($1 = 83.4810 Indian rupees)

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(Published 05 July 2024, 12:29 IST)